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LendingTree (TREE) Q4 Earnings Beat Estimates, Revenues Fall
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LendingTree, Inc.’s (TREE - Free Report) fourth-quarter 2023 adjusted net income per share of 28 cents beat the Zacks Consensus Estimate of 14 cents. However, the reported figure compares unfavorably with 38 cents reported in the prior-year quarter.
The company’s results were aided by lower costs, while a decline in revenues was a spoilsport.
LendingTree reported net income of $12.7 million against a loss of $10.4 million in the year-ago quarter.
In 2023, adjusted net income per share of $2.28 beat the consensus estimate of $2.14 and increased from $1.07 in the prior year. The company recorded a net loss of $122.4 million compared with $188 million recorded in the prior year.
Revenues & Variable Marketing Margin Decline
Total revenues were down 33.5% year over year to $134.4 million in the fourth quarter. The downside stemmed from a decline in the Home, Consumer, Insurance and Other segments' revenues. Also, the reported figure missed the Zacks Consensus Estimate of $135.6 million.
In 2023, total revenues declined 31.7% year over year to $672.5 million. Also, the top line missed the Zacks Consensus Estimate of $674 million.
The total cost of revenues was $8.1 million, down nearly 40% from the prior-year quarter.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) totaled $15.5 million, down 7.2% year over year. The variable marketing margin was at $60.6 million, down 22.4%.
As of Dec 31, 2023, cash and cash equivalents were $112.1 million compared with $298.8 million as of 2022-end. Long-term debt was $525.6 million compared with $813.5 million as of 2022-end.
Outlook
For the first quarter of 2024, total revenues are estimated to be between $158 million and $168 million. Adjusted EBITDA and the variable marketing margin are anticipated to be $17-$21 million and $66-$72 million, respectively.
For 2024, total revenues are projected to be between $650 million and $690 million. Adjusted EBITDA is suggested in the $85-$95 million band. The variable marketing margin is expected to be between $280 million and $300 million.
Conclusion
TREE’s total revenues were affected mainly by a decline in all its segment revenues. Nonetheless, management is focused on simplifying its operations andreducing operating costs. It is also making efforts to fortify its balance sheet and aligning the same for long-term success.
LendingTree, Inc. Price, Consensus and EPS Surprise
SLM Corporation’s (SLM - Free Report) fourth-quarter 2023 core earnings per share of 72 cents missed the Zacks Consensus Estimate of 87 cents. The bottom line, however, compared favorably with the prior-year quarter’s loss of 33 cents.
A rise in non-interest expenses impeded SLM’s results. Nonetheless, lower provisions for credit losses, an increase in net interest income (NII), robust loan originations and higher non-interest income were positives.
Navient Corporation (NAVI - Free Report) reported fourth-quarter 2023 adjusted earnings per share of 70 cents, missing the Zacks Consensus Estimate of 77 cents. Also, the bottom line was lower than the prior-year quarter’s 76 cents.
Results of NAVI were adversely impacted by a fall in total other income and core NII. Further, a rise in expenses acted as a headwind. Nonetheless, strategic actions announced by the company will support its financials in the upcoming period.
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LendingTree (TREE) Q4 Earnings Beat Estimates, Revenues Fall
LendingTree, Inc.’s (TREE - Free Report) fourth-quarter 2023 adjusted net income per share of 28 cents beat the Zacks Consensus Estimate of 14 cents. However, the reported figure compares unfavorably with 38 cents reported in the prior-year quarter.
The company’s results were aided by lower costs, while a decline in revenues was a spoilsport.
LendingTree reported net income of $12.7 million against a loss of $10.4 million in the year-ago quarter.
In 2023, adjusted net income per share of $2.28 beat the consensus estimate of $2.14 and increased from $1.07 in the prior year. The company recorded a net loss of $122.4 million compared with $188 million recorded in the prior year.
Revenues & Variable Marketing Margin Decline
Total revenues were down 33.5% year over year to $134.4 million in the fourth quarter. The downside stemmed from a decline in the Home, Consumer, Insurance and Other segments' revenues. Also, the reported figure missed the Zacks Consensus Estimate of $135.6 million.
In 2023, total revenues declined 31.7% year over year to $672.5 million. Also, the top line missed the Zacks Consensus Estimate of $674 million.
The total cost of revenues was $8.1 million, down nearly 40% from the prior-year quarter.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) totaled $15.5 million, down 7.2% year over year. The variable marketing margin was at $60.6 million, down 22.4%.
As of Dec 31, 2023, cash and cash equivalents were $112.1 million compared with $298.8 million as of 2022-end. Long-term debt was $525.6 million compared with $813.5 million as of 2022-end.
Outlook
For the first quarter of 2024, total revenues are estimated to be between $158 million and $168 million. Adjusted EBITDA and the variable marketing margin are anticipated to be $17-$21 million and $66-$72 million, respectively.
For 2024, total revenues are projected to be between $650 million and $690 million. Adjusted EBITDA is suggested in the $85-$95 million band. The variable marketing margin is expected to be between $280 million and $300 million.
Conclusion
TREE’s total revenues were affected mainly by a decline in all its segment revenues. Nonetheless, management is focused on simplifying its operations andreducing operating costs. It is also making efforts to fortify its balance sheet and aligning the same for long-term success.
LendingTree, Inc. Price, Consensus and EPS Surprise
LendingTree, Inc. price-consensus-eps-surprise-chart | LendingTree, Inc. Quote
Currently, LendingTree sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Performance of Other Finance Stocks
SLM Corporation’s (SLM - Free Report) fourth-quarter 2023 core earnings per share of 72 cents missed the Zacks Consensus Estimate of 87 cents. The bottom line, however, compared favorably with the prior-year quarter’s loss of 33 cents.
A rise in non-interest expenses impeded SLM’s results. Nonetheless, lower provisions for credit losses, an increase in net interest income (NII), robust loan originations and higher non-interest income were positives.
Navient Corporation (NAVI - Free Report) reported fourth-quarter 2023 adjusted earnings per share of 70 cents, missing the Zacks Consensus Estimate of 77 cents. Also, the bottom line was lower than the prior-year quarter’s 76 cents.
Results of NAVI were adversely impacted by a fall in total other income and core NII. Further, a rise in expenses acted as a headwind. Nonetheless, strategic actions announced by the company will support its financials in the upcoming period.